DFIs make way for pensions as PE investors

PE funds from the 2006-08 vintage have under performed as they invested at high valuations

There is a subtle change in the limited partners (LPs) landscape for private equity (PE) in India. LPs are institutional investors which invest in PE funds, also called general partners in the segment.

In 2006-07, when many PE funds in India raised money, development finance institutions (DFIs) like CDC Group, the International Finance Corporation (IFC), DEG and FMO were the main investors backing these. While some of these continue to back PE funds in India, pension funds, led by Canadians funds, have emerged as the main LPs in India.

These include Canada Pension Plan Investment Board (CPPIB), Caisse de dépôt et placement